BIG news for central government employees about DA hike
7th Compensation Committee: Amid the increase in Covid-19 cases in the country, central government employees may have to wait a little longer for the DA hike. A report from Financial Express said the planned DA hike for central government employees would be further delayed.
The JCM National Council – Staff side said the central government could announce an increase in AD for its employees in June 2021. The next increase in AD is expected to be up to 4 percent of employees’ base salary. central government, according to the report.
Earlier, the Minister of State (MoS) for Finance, Anurag Singh Thakur, had said that the three payments of the cost allowance would start to be paid from July 1, 2021.
In a written response to the Upper House of Parliament regarding the DA payment, Anurag Thakur said the three DA installments pending from central government officials would be “ subsumed ” and the revised DA rates would come into effect. effective July 1, 2021.
So far, there has been no update on three pending DA installments for January 1, 2020, July 1, 2020, and January 1, 2021.
According to several reports, the delay in announcing the AD hike is mainly due to the second wave of Covid-19 underway in the country, which continues to wreak havoc. The announcement was expected at the end of April or in the first half of May. But now it is likely to be declared in June.
Will the DA increase impact the 7th Compensation Commission?
The announcement of the planned AD hike will not have much of an impact on the pay matrix of the 7th Compensation Commission (7th CPC) of central government employees, according to the FE report. The reason is that the central government has already frozen DA and DR benefits for employees and retirees until June 2021.
Plant employees and retirees currently receive 17% unemployment benefit.